ACC501 – Home Designs, Aussie Campers and Accor Australia
Question 1 Preparation of financial statements Home Designs Ltd, a homewares manufacturing company, commenced operations on 1 July 2018. You are the company’s financial accountant. The accounting records for the year ended 30 June 2019 showed the following accounts and balances: Home Designs Ltd Account balances at 30 June 2019 $ Advertising expense 46,000 Accounts payable 56,300 Accumulated depreciation – buildings 20,000 Accumulated depreciation – plant and equipment 40,000 Allowance for doubtful debts 1,600 Annual leave expense 25,000 Bank account 143,000 Bank loan 200,000 Buildings 800,000 Cost of goods sold 780,000 Current tax liability 274,000 Depreciation expense 60,000 Dividends paid 200,000 Doubtful debts expense 2,000 Finished goods inventory 322,000 Income tax expense 274,000 Interest expense 22,000 Interest income 3,100…
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